US Stocks Fall Broadly, Led By Financial Sector

DonnaKardos

NEW YORK (MarketWatch) -- U.S. stocks fell broadly Friday despite earnings from Intel and J.P. Morgan Chase coming in above analysts' estimates, as weaker-than-expected revenue from J.P. Morgan weighed on financials such as Bank of America while troubles on the consumer side of its business raised concerns across other sectors as well.

Friday's declines put stocks in negative territory for the week, marking the second week of declines in three weeks.

The Dow Jones Industrial Average fell 100.90 points, or 0.94%, to 10609.65, Friday, marking its biggest one-day drop this year. For the week, it fell 8.54 points, or 0.08%.

Bank of America was the measure's worst performer Friday, off 56 cents, or 3.3%, to 16.26, after J.P. Morgan's fourth-quarter earnings quadrupled, exceeding forecasts, but its revenue came in below analysts' estimates and the banking giant posted losses in its card services, consumer lending and retail financial-services segments. J.P. Morgan fell 1.01, or 2.3%, to 43.68.

Intel (Nasdaq) also weighed on the Dow with a drop of 68 cents, or 3.2%, to 20.80. The giant chip maker's fourth-quarter profit surged nearly 10-fold from the depressed year-earlier period and its closely watched gross profit margin hit a record. However, investors grew fearful that the stock may be near its peak following the most profitable quarter in Intel's history.

Ben Halliburton, chief investment officer at Tradition Capital Management, said the fact that shares of J.P. Morgan and Intel fell following their strong fourth-quarter earnings shows "the bar has been raised so high given the run from the March lows that there is pretty big room for disappointment."

Halliburton believes the stock market is "a little on the extended side." He added, "the consumer credit situation is still very negative."

The Nasdaq Composite fell 28.75, or 1.24%, to 2287.99. It dropped 1.26% over the course of the week. The Standard & Poor's 500 slipped 12.43, or 1.08%, to 1136.03, its biggest one-day drop since Dec. 17. All its sectors ended the day in the red, led by financials. The measure fell 0.78% for the week.

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